Taking the fluid temperature distribution along the borehole depth into account, a new quasi-three-dimensional model for vertical ground heat exchangers has been established, which provides a better understanding of the heat transfer processes in the geothermal heat exchangers. On this basis the efficiency of the borehole has been defined and its analytical expression derived. Comparison with the previous two-dimensional model shows that the quasi-three-dimensional model is more rational and more accurate to depict the practical feature of the conduction of geothermal heat exchanger, and the efficiency notion can be easily used to determine the inlet and outlet temperature of the circulating fluid inside the heat exchanger. Taking the fluid temperature distribution along the borehole depth into account, a new quasi-three-dimensional model for vertical ground heat exchangers has been established, which provides a better understanding of the heat transfer processes in the geothermal heat exchangers. of the borehole has been defined and its analytical expression derived. Comparison with the previous two-dimensional model shows that the quasi-three-dimensional model is more rational and more accurate to depict the practical feature of the conduction of geothermal heat exchanger, and the efficiency notion can be easily used to determine the inlet and outlet temperature of the circulating fluid inside the heat exchanger.